Q2 2022 NextNav Inc Earnings Call

August 10, 2022

Gary Parsons: Sa.

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Operator: Please wait. The conference will begin shortly.

Please wait. The conference will begin shortly.

Please wait the conference will begin shortly.

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Okay.

Operator: Good morning everyone and welcome to NextNav's Q2 2022 earnings conference call. Participating today on today's call are Gary Parsons, NextNav Chairman Ganesh Pattabiraman, NextNav's Co-Founder and CEO, and Chris Gates, NextNav's Chief Financial Officer. Please note before we begin that during today's presentation, the company may make forward-looking statements either in our prepared remarks or in the associated question and answer session. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav's future prospects, developments, and business strategies.

Good morning, everyone and welcome to next that's second quarter 2022 earnings conference call participating today on today's call are Gary Parsons next steps Chairman goodness therapy, Armen next <unk> co founder and CEO.

And Chris Gates next Fabs Chief Financial Officer. Please note.

Before we begin that journey today's presentation. The company may make forward looking statements either in our prepared remarks or in the associated question and answer session.

These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to NextNav's future prospects, developments, and business strategies.

Statements, which involve risks and uncertainties relate two analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to next snaps future prospects developments and business strategies.

Operator: In particular, such forward-looking statements include statements about NextNav's position to drive growth in its 3D geolocation business and expansion of its next-generation GPS platform, the business plans, objectives, expectations, and intentions of NextNav, NextNav's partnerships and potential success thereof, in NextNav's estimated and future business strategies, competitive position, industry environment, and potential growth opportunities. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially. Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside NextNav's control and that could cause actual results to differ materially from the results discussed in the forward-looking statements.

In particular, such forward-looking statements include statements about NextNav's position to drive growth in its 3D geolocation business and expansion of its next-generation GPS platform, the business plans, objectives, expectations, and intentions of NextNav, NextNav's partnerships and potential success thereof, in NextNav's estimated and future business strategies, competitive position, industry environment, and potential growth opportunities. These statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially.

In particular such forward looking statements include statements about next steps position to drive growth and its three D geolocation business and expansion of its next generation G. P. S platform the business plans objectives expectations and then pensions of next steps next steps partnership.

And potential success thereof, and next tax estimated and future business strategies competitive position industry environment and potential growth opportunities.

Statements are based on current expectations or beliefs and are subject to certain risks and uncertainties that may cause actual results to differ materially.

Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside NextNav's control and that could cause actual results to differ materially from the results discussed in the forward-looking statements.

Such forward looking statements are subject to known known and unknown risks uncertainties assumptions and other important factors many of which are outside next steps control and that could cause actual results to differ materially from bid results discussed in the forward looking statements fees.

Operator: These risks, uncertainties, assumptions, and other important factors include, but are not limited to, the ability of NextNav to continue to gain traction in key markets with notable platforms and partners both within the US and internationally, the ability of NextNav to grow and manage growth, profitability, maintain relationships with partners, customers, and suppliers, including with respect to NextNav's Pinnacle 911 solution and its TerraPoint network, the ability to retain its management and key employees, the ability to maintain balance sheet flexibility and generate and effectively deploy capital in line with its business strategies, the possibility that NextNav may be adversely affected by other economic, business, and/or competitive factors, including the impact of the ongoing COVID-19 coronavirus pandemic, other risks and uncertainties indicated from time to time in documents filed with the Securities and Exchange Commission by NextNav.

These risks, uncertainties, assumptions, and other important factors include, but are not limited to, the ability of NextNav to continue to gain traction in key markets with notable platforms and partners both within the US and internationally, the ability of NextNav to grow and manage growth, profitability, maintain relationships with partners, customers, and suppliers, including with respect to NextNav's Pinnacle 911 solution and its TerraPoint network, the ability to retain its management and key employees, the ability to maintain balance sheet flexibility and generate and effectively deploy capital in line with its business strategies.

These risks uncertainties assumptions and other important factors include but are not limited to the ability of next step to continue to gain traction in key markets markets with notable platforms and partners both within the U S and internationally the ability of neck snap to Crow and manage.

Profitability maintain relationship with partners customers and suppliers, including with respect to next nabs Pinnacle 911 solution and its tariff point network the ability to retain its management and key employees the ability to maintain balance sheet flexibility and generate and effectively.

The portly.

Capital in line with its business strategies, the possibility that next up may be adversely affected by other economic business and our competitive factors, including the impact of the ongoing COVID-19, coronavirus pandemic other risks and uncertainties indicated from time to time and.

The possibility that NextNav may be adversely affected by other economic, business, and/or competitive factors, including the impact of the ongoing COVID-19 coronavirus pandemic, other risks and uncertainties indicated from time to time in documents filed with the Securities and Exchange Commission by NextNav.

<unk> filed with the Securities and Exchange Commission by next Nap.

Operator: New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise. Risk factors that may impact our performance are identified in our most recent SEC filings. Following our prepared remarks, the Company will host an operator-led question and answer session. In addition, at the conclusion of today's call, a replay of our discussion will be posted to the Company's investor relations website. With that, I'll turn the call over to NextNav's Chairman Gary Parsons. Please go ahead.

New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and NextNav undertakes no commitment to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise. Risk factors that may impact our performance are identified in our most recent SEC filings. Following our prepared remarks, the Company will host an operator-led question and answer session.

New risks and uncertainties arise from time to time, and it's impossible for us to predict these events or how they may affect US you are cautioned not to place undue reliance upon any forward looking statements, which speak only as of the date made and next Nab undertakes no commitment to update or revise the forward.

Looking statements, whether as a result of new information future events or otherwise risk fast first that may impact our performance are identified in our most recent SEC filings. Following our prepared remarks. The company will host an operator led question and answer session. In addition.

In addition, at the conclusion of today's call, a replay of our discussion will be posted to the Company's investor relations website. With that, I'll turn the call over to NextNav's Chairman Gary Parsons. Please go ahead.

At the conclusion of today's call a replay of our discussion will be posted to the company's investor relations website with that I'll turn the call over to next <unk> Chairman Gerry Parsons. Please go ahead.

Gary Parsons: Thanks very much, Operator, and good morning, everyone. We're pleased to have you here today to discuss our second quarter results. To begin the call, I will provide a high-level overview of the quarter, and then turn things over to Ganesh to run through our operational highlights, and Chris will provide a review of financial performance, followed by our Q and A period. Before I jump into comments on the quarter itself, I wanted to touch on the news we issued alongside earnings this morning. As you may have seen, we're very excited to announce that Neil Subin will be joining the NextNav Board of Directors effective today. He'll be replacing Peter Barris, who many of you know as a long-standing board member with NextNav.

Okay.

Very much operator, and good morning, everyone. We're pleased to have you here today to discuss our second quarter results to begin the call I will provide a high level overview of the quarter and then turn things over to the best run through our operational highlights and Chris will provide a review of financial performance followed by our Q&A.

Period.

Before I jump into the comments on the quarter itself I wanted to touch on the news we issued alongside earnings this morning.

You may have seen we're very excited to announce that Neil subban will be joining the <unk> board of directors effective today Hill.

He'll be replacing Peter Barris, who many of you know as a long-standing board member with NextNav.

Replacing Peter Barrett, who many of you know is a long standing board member with next now Pete.

Gary Parsons: Peter was recently named Chairman of the Board of Trustees of Northwestern University, and he's also chairing the search committee for the new President of the University. So, you know, given the time and effort required for those new duties, as well as his other industry commitments, Peter will be stepping down from NextNav's board. Given his many, many years of service, I wanted to, you know, to personally thank Peter for his great dedication and support, and to wish him well as he takes on that board chairmanship at Northwestern. It's really hard to say how excited I am to have Neil stepping into this new role. As many of you will remember, Neil was an integral part of the Spartacus team that helped take NextNav public.

Peter was recently named Chairman of the Board of Trustees of Northwestern University, and he's also chairing the search committee for the new President of the University. So, you know, given the time and effort required for those new duties, as well as his other industry commitments, Peter will be stepping down from NextNav's board. Given his many, many years of service, I wanted to, you know, to personally thank Peter for his great dedication and support, and to wish him well as he takes on that board chairmanship at Northwestern. It's really hard to say how excited I am to have Neil stepping into this new role.

Peter was recently named Chairman of the board of Trustees at Northwestern University.

He is also carrying the search committee for the new President of the University. So.

Given the time and effort required for those new duties as well as other industry commitments Peter will be stepping down from next Nabs Board.

Given his many many years of service I Wonder if.

Personally thank Peter for his great dedication and support.

And I wish him well as he takes on that board chairman ship at northwestern.

And it's really hard to say how excited I am to have Neil stepping into this new role as many of you will remember Neil was an integral part of the Spartacus theme that help to take next now public.

As many of you will remember, Neil was an integral part of the Spartacus team that helped take NextNav public.

Gary Parsons: I've known Neil for many years and have seen how successful he's been in telecom investing and helping new high tech companies grow and prosper. From an investor standpoint, many of you already know about Neil's domain expertise in manifesting value from underlying spectrum assets, which he's well known for. In fact, NextNav's nationwide spectrum assets were a core part of that investment platform thesis that originally attracted the Spartacus team to NextNav, and that's what facilitated our merger. As a reminder, that spectrum asset, representing 8 contiguous MHz of sub-gigahertz spectrum and over 2.4 billion MHz POPs nationwide, covers virtually all key markets and the vast preponderance of all urbanized areas. Thus the ability to back up GPS, provide resiliency and critical infrastructure timing.

I've known Neil for many years and have seen how successful he's been in telecom investing and helping new high tech companies grow and prosper. From an investor standpoint, many of you already know about Neil's domain expertise in manifesting value from underlying spectrum assets, which he's well known for. In fact, NextNav's nationwide spectrum assets were a core part of that investment platform thesis that originally attracted the Spartacus team to NextNav, and that's what facilitated our merger.

I've known Neil for many years and have seen how successful he has been in.

In telecom investing and helping new high tech companies grow and prosper.

I'm, an investor standpoint, many of you already know about neil's domain expertise.

And manifesting value from underlying spectrum assets, which is well known for.

In fact, <unk> nationwide spectrum assets were a core part of that investment thesis that originally attracted the spartacus team to next now then and Thats what facilitated our merger.

As a reminder, that spectrum asset, representing 8 contiguous MHz of sub-gigahertz spectrum and over 2.4 billion MHz POPs nationwide, covers virtually all key markets and the vast preponderance of all urbanized areas. Thus the ability to back up GPS, provide resiliency and critical infrastructure timing.

As a reminder that spectrum asset.

Representing eight contiguous megahertz of sub gigahertz spectrum and over $2 4 billion megahertz Pops.

Nationwide covers virtually all key markets and the vast preponderance of all urbanized areas.

Does the ability to backup GPS provide resiliency and critical infrastructure timing and resiliency in urban markets.

Gary Parsons: Resiliency in urban markets is truly quite comprehensive on a nationwide basis, and we'll talk more about the importance of that as we go throughout the call. So having Neil on board will allow us to continue to use this asset along our current tech stack, but also look for additional opportunities to potentially leverage our spectrum in new ways. Overall, we're just thrilled to have Neil on board, and we look forward to working with him. We're continuing to work with a national search firm, by the way, to identify additional board candidates that will bring more diversity to our current slate. We hope to have more to share on that front later this year. Now turning to the business. In spite of, you know, what's obviously a challenging macroeconomic environment around us, we continue to see solid platform and partner adoption.

Resiliency in urban markets is truly quite comprehensive on a nationwide basis, and we'll talk more about the importance of that as we go throughout the call. So having Neil on board will allow us to continue to use this asset along our current tech stack, but also look for additional opportunities to potentially leverage our spectrum in new ways. Overall, we're just thrilled to have Neil on board, and we look forward to working with him. We're continuing to work with a national search firm, by the way, to identify additional board candidates that will bring more diversity to our current slate.

It is truly quite comprehensive on a nationwide basis, and we will talk more about the importance of that as we go throughout the call.

So having neale onboard will allow us to continue to use this asset along our current tech stack, but also look for additional opportunities to potentially leverage our spectrum and new waves. Overall, we're just thrilled to have Neil on board and we look forward to working with them.

We're continuing to work with a national search firm by the way to identify additional board candidates that will bring more diversity to our current slate, we hope to have more to share on that front later this year.

We hope to have more to share on that front later this year. Now turning to the business. In spite of, you know, what's obviously a challenging macroeconomic environment around us, we continue to see solid platform and partner adoption.

Now turning now to the business in spite of what's obviously, a challenging macroeconomic environment around us.

We continued to see solid platform and partner adoption in the second quarter.

Gary Parsons: In Q2, we delivered significant year-over-year growth in revenue while continuing to manage the business with an eye towards prudent cost management. As you'll hear from Chris shortly, we've done a good job managing our expenses, and while we are continuing to ramp up headcount, we've been a little less aggressive on that front in light of these uncertain economic environments. Further, we're prioritizing the new hires to those market segments which are showing the most near-term promise as a business. We're focused on aligning our strategies and our product offerings with what's happening in the marketplace. This is particularly important as we're seeing accelerating government interest both in the United States and internationally in our TerraPoint GPS resiliency service. Of course, along with our ongoing adoption of Pinnacle technology across various markets adjacent to the public safety marketplace.

In Q2, we delivered significant year-over-year growth in revenue while continuing to manage the business with an eye towards prudent cost management. As you'll hear from Chris shortly, we've done a good job managing our expenses, and while we are continuing to ramp up headcount, we've been a little less aggressive on that front in light of these uncertain economic environments. Further, we're prioritizing the new hires to those market segments which are showing the most near-term promise as a business. We're focused on aligning our strategies and our product offerings with what's happening in the marketplace.

We delivered significant year over year growth in revenue, while continuing to manage the business with an eye towards prudent cost management as Youll hear from Chris Shortly we've done a good job managing our expenses and while we are continuing to ramp up head count we've been a little less aggressive on that front in light of these <unk>.

Certain economic environment.

And further and we're prioritizing the new hires to those market segments, which are showing the most near term promise.

As the business, we're focused on aligning our strategies and.

And our product offerings with what's happening in the marketplace.

This is particularly important as we're seeing accelerating government interest both in the United States and internationally in our TerraPoint GPS resiliency service. Of course, along with our ongoing adoption of Pinnacle technology across various markets adjacent to the public safety marketplace.

This is particularly important as we're seeing accelerating government interest both in the United States and internationally and our tariff points EPS resiliency services.

Of course, along with our ongoing adoption of clinical technology across various markets.

Adjacent to the public safety marketplace.

Gary Parsons: As Ganesh will outline in a moment, we signed new partnerships in several key verticals in the quarter. Notably, we deepened our footprint significantly in public safety and believe this expansion further validates the importance of our technology to public safety providers and our continued commitment to serving this growing and dynamic industry. On the international front, we're also making great strides in Japan with the MetCom collaboration. In the second quarter, we signed an agreement for commercial deployment of our Pinnacle vertical location service in Japan. Deployment of Pinnacle in Japan marks the first international rollout of the full 3D geolocation technology and it's an excellent validation of our services. We're delighted to see this moving forward and we'll continue to keep everyone advised of the progress. We also remain in active discussions with both US.

As Ganesh will outline in a moment, we signed new partnerships in several key verticals in the quarter. Notably, we deepened our footprint significantly in public safety and believe this expansion further validates the importance of our technology to public safety providers and our continued commitment to serving this growing and dynamic industry. On the international front, we're also making great strides in Japan with the MetCom collaboration. In the second quarter, we signed an agreement for commercial deployment of our Pinnacle vertical location service in Japan.

As Ganesh will outline in a moment, we signed new partnerships in several key verticals in the quarter, notably, we deepened our footprint significantly and public safety.

We believe this expansion further validates the importance of our technology to public safety providers.

And iron our continued commitment to serving.

This growing and dynamic industry.

On the International front, we're also making great strides in Japan with the Netcom collaboration and.

In the second quarter, we signed an agreement for commercial deployment of our clinical vertical location service in Japan.

Deployment of Pinnacle in Japan marks the first international rollout of the full 3D geolocation technology and it's an excellent validation of our services. We're delighted to see this moving forward and we'll continue to keep everyone advised of the progress. We also remain in active discussions with both US.

Deployment of political that Japan marks the first international rollout of the full three D geolocation technology.

It's an excellent validation of our services.

Delighted to see this moving forward and we'll continue to keep everyone advised of the progress.

We also remain in active discussions.

With both U S and European governments around solutions to address GPS vulnerability.

Gary Parsons: and European governments around solutions to address GPS vulnerability as Ganesh will expand on shortly. Things are moving forward as governments continue to realize the vast importance of securing those position navigation and timing or P and T resilience capabilities. The activity we've seen to date gives us confidence that we're on a good path to 2023 appropriations to secure additional dollars for the DOT and DHS to move forward on the implementation plan for P and T resilience. And then finally, before turning it over to Ganesh, I wanted to briefly comment on our recent addition to the Russell 2000 Index in June. In short, we're pleased to now be a part of the Russell 2000.

and European governments around solutions to address GPS vulnerability as Ganesh will expand on shortly. Things are moving forward as governments continue to realize the vast importance of securing those position navigation and timing or P and T resilience capabilities. The activity we've seen to date gives us confidence that we're on a good path to 2023 appropriations to secure additional dollars for the DOT and DHS to move forward on the implementation plan for P and T resilience. And then finally, before turning it over to Ganesh, I wanted to briefly comment on our recent addition to the Russell 2000 Index in June.

As Ganesh will expand on shortly things are moving forward as governments continue to realize the vast importance of securing those position navigation and timing or PMT resilience capabilities. The activity. We've seen to date gives us confidence that we're on.

On a good path to 2023 appropriations to secure additional dollars for the DLT and DHS.

To move forward on the implementation plan for PMT resilience.

And then finally before turning it over to Vanessa I wanted to briefly comment on our recent addition to the Russell 2000 index in June .

In short, we're pleased to now be a part of the Russell 2000.

In short we're pleased to now be a part of the Russell.

Gary Parsons: This is a significant milestone for our business, and inclusion in the Index will broaden our visibility with the investment community, since the continued momentum and adoption of our next generation GPS capabilities will hopefully then be able to translate into value creation for all of our shareholders. In all, we think there's a great opportunity given our current assets base and the technology capabilities that we've gotten to really drive this business forward. And so with that, let me turn it over to Ganesh.

This is a significant milestone for our business, and inclusion in the Index will broaden our visibility with the investment community, since the continued momentum and adoption of our next generation GPS capabilities will hopefully then be able to translate into value creation for all of our shareholders. In all, we think there's a great opportunity given our current assets base and the technology capabilities that we've gotten to really drive this business forward. And so with that, let me turn it over to Ganesh.

This is a significant milestone for our business and inclusion in the index will broaden our visibility with the investment community that the continued momentum and adoption of our next generation GPS capabilities will hopefully then be able to translate into value creation for all of our shareholders and all we think where there is a.

Great opportunity given our current asset base and the technology capabilities that we have gotten to really drive this business forward.

And so with that let me turn it over to Ganesh.

Ganesh Pattabiraman: Thank you Gary and good morning everyone. We're pleased to be here to discuss our progress in the second quarter. First of all, I do want to thank Peter Barris for his support and work on the board for nearly a decade. His guidance and support has helped us become a better and stronger company. We wish Peter well and know that he will bring tremendous value to Northwestern and his other endeavors. I'm excited to see Neil join our board. We worked very closely last year when we were going public and his knowledge and expertise on telecommunications spectrum issues will be truly invaluable as we chart our new path. Now, I want to take a moment to expand on the comments about the governmental activity in Europe and the US over the last several months.

Thank you Gary and good morning, everyone.

Pleased to be here to discuss our progress in the second quarter.

First of all I do want to thank Peter Barrett for his support and work on the board for nearly a decade his guidance and support has helped us become a better and stronger company.

We wish Peter well and know that he will bring tremendous value to northwest and just other endeavors.

I'm excited to see Neil joined our board we work very closely last year. When you were going public and his knowledge and expertise on telecommunications spectrum issues will be truly invaluable as we chart our new pet.

Now, I want to take a moment to expand on the comments about the governmental activity in Europe and the US over the last several months.

Now I want to take a moment to expand on.

The comments about the governmental activity in Europe , and the U S.

Over the last several months, we have seen growing momentum and activity out of the U S government towards realizing P&C resilience.

Ganesh Pattabiraman: We have seen growing momentum and activity out of the US Government towards realizing PNT resilience. The recent release of the 2021 Federal Radio Navigation Plan, published jointly by the Department of Defense, Department of Transportation, and DHS, significantly mentions the importance of ensuring PNT resilience to protect our nation's critical infrastructure. Specifically, the plan highlights the goal of increasing resilience against GPS and PNT disruption, especially in light of growing cyber threats, and describes the capabilities needed to meet the future requirements of a resilient PNT enterprise in the national PNT architecture. The National Research and Development Plan for Positioning, Navigation, and Timing Resilience has as one of its stated goals to expand resilient P and T, including approaches to integrate and use multiple P and T services.

We have seen growing momentum and activity out of the US Government towards realizing PNT resilience. The recent release of the 2021 Federal Radio Navigation Plan, published jointly by the Department of Defense, Department of Transportation, and DHS, significantly mentions the importance of ensuring PNT resilience to protect our nation's critical infrastructure. Specifically, the plan highlights the goal of increasing resilience against GPS and PNT disruption, especially in light of growing cyber threats, and describes the capabilities needed to meet the future requirements of a resilient PNT enterprise in the national PNT architecture.

The recent release of the 2021 Federal Radio Navigation plan published jointly by the Department of Defense Department of Transportation and DHS significantly you mentioned the importance of ensuring PNT the billions to protect our nation's critical infrastructure.

Quickly the plan highlight the goal of increasing resilience against GPS and PMT disruptions, especially in light of growing cyber threats and describes the capabilities needed to meet the future requirements of the resilient Pnp enterprise in the National PNT architecture.

The National Research and Development Plan for Positioning, Navigation, and Timing Resilience has as one of its stated goals to expand resilient P and T, including approaches to integrate and use multiple P and T services.

The National Research and development plan for position navigation and timing resilience.

As one of the stated goals to expand resilient PNT, including approaches to integrate and use multiple PNT services.

Ganesh Pattabiraman: Following intense Congressional activities that our team helped to orchestrate, we now believe the government will be taking concrete action in the coming months towards implementing PNT resilience. This includes elements of the Executive Order 13905, which calls for all federal procurement to include resilient PNT systems, and as part of the discretionary grants made available through the Infrastructure Bill, especially those focused on resilience such as all hazards, and cybersecurity. You can already see elements of the federal government moving forward with policies and directives that look to PNT resilience as part of their procurement process.

Following intense Congressional activities that our team helped to orchestrate, we now believe the government will be taking concrete action in the coming months towards implementing PNT resilience. This includes elements of the Executive Order 13905, which calls for all federal procurement to include resilient PNT systems, and as part of the discretionary grants made available through the Infrastructure Bill, especially those focused on resilience such as all hazards, and cybersecurity. You can already see elements of the federal government moving forward with policies and directives that look to PNT resilience as part of their procurement process.

Following intense congressional activity that our team helped to orchestrate. We now believe the government will be taking concrete actions in the coming months towards implementing PMT resilience. This includes elements of the executive order 13, 905, which calls for all federal procurement to include resilient PMT systems.

And as part of the discretionary grants made available through the infrastructure Bill, especially those focus on resilience such as all hazards and cyber security.

You can already see elements of the federal government moving forward with policies and directives that look to PMT resilience as part of their procurement process.

Ganesh Pattabiraman: The FAA issued a policy framework 1770.68 in 2020 that directed all program offices and systems and service application owners to migrate their systems and or applications as soon as feasible, but no later than financial year 2025 away from time and frequency systems dependent on GPS GNSS to a NIST or US Naval Observatory traceable source provided by FAA timing systems or services. Although this directive was issued in 2020, what is significant is that this year it was incorporated into the procurement process and all PNT requirements must be included in all solicitations, contracts, and orders for products. This is a huge step forward in exactly the type of activities we had talked about the US Government undertaking in enabling PNT resilience, and we expect other agencies to follow suit and include similar language in their procurement process in the coming months.

The FAA issued a policy framework 1770.68 in 2020 that directed all program offices and systems and service application owners to migrate their systems and or applications as soon as feasible, but no later than financial year 2025 away from time and frequency systems dependent on GPS GNSS to a NIST or US Naval Observatory traceable source provided by FAA timing systems or services. Although this directive was issued in 2020, what is significant is that this year it was incorporated into the procurement process and all PNT requirements must be included in all solicitations, contracts, and orders for products.

FAA issued a policy framework 17 76, eight in 2020 that directed all program offices and systems and service application owners, who migrate their systems and our applications as soon as feasible, but no later than financial year 2025 away from time and frequency systems dependent on GPS.

DNS says to a NIST or U S Naval Observatory traceable source provided by.

FAA timing systems or services.

Although the director was issued in 2020, what is significant is that this year. It was incorporated into the procurement process.

And all PMT requirements must be included in all of those stations contracts and orders for products.

This is a huge step forward in exactly the type of activities we had talked about the US Government undertaking in enabling PNT resilience, and we expect other agencies to follow suit and include similar language in their procurement process in the coming months.

This is a huge step forward and exactly the type of activities. We had talked about the U S government undertaking and enabling <unk> and we expect other agencies to follow suit and include similar language in their procurement process in the coming months.

Ganesh Pattabiraman: In addition, on 4 August, the Department of Transportation, in coordination with DHS, organized an Industry Roundtable to bring together critical infrastructure providers, technology providers like those discussed, and various federal agencies to understand the state of the industries and the barriers to adoption of resilient PNT system. It was good to see this process be put in place. I think the various agencies benefited from hearing both the potential end users, and providers of the capability and how they could move forward. NASA also conducted a similar workshop in May for Urban Air Mobility and Advanced Air Mobility, where I spoke about NextNav's offerings and how it could make drone and eVTOL operations safer and more reliable.

In addition, on 4 August, the Department of Transportation, in coordination with DHS, organized an Industry Roundtable to bring together critical infrastructure providers, technology providers like those discussed, and various federal agencies to understand the state of the industries and the barriers to adoption of resilient PNT system. It was good to see this process be put in place. I think the various agencies benefited from hearing both the potential end users, and providers of the capability and how they could move forward.

In addition on August four the department of transportation in coordination with DHS organized and industry Roundtable to bring together critical infrastructure providers technology providers like us and various federal agencies to understand the state of the industries and the barriers to adoption of Brazilian PMT system. It was good to see in this process we put in place.

I think the various agencies benefited from sharing both the potential end users and providers of the capability and how they could move forward.

NASA also conducted a similar workshop in May for Urban Air Mobility and Advanced Air Mobility, where I spoke about NextNav's offerings and how it could make drone and eVTOL operations safer and more reliable.

NASA also conducted a similar workshop in May for urban Air mobility, and advanced admirably that I spoke about NEC <unk> offerings, and how it could make drone and <unk> operations safer and more reliable.

Ganesh Pattabiraman: As an outcome of all these discussions, we expect several trials, proofs of concept to emerge in the next few months, followed by procurement plans of RADIUS systems and grant money to be made available through several of the DOT grant programs as derived from the Infrastructure Bill.

As an outcome of all these discussions, we expect several trials, proofs of concept to emerge in the next few months, followed by procurement plans of RADIUS systems and grant money to be made available through several of the DOT grant programs as derived from the Infrastructure Bill.

As an outcome of all of these discussions we expect several trials proof of concept stream margin in the next few months followed by.

Procurement plans of radio systems, and grant money to be made available through several of the dot grant programs as derived from the infrastructure build.

Ganesh Pattabiraman: On the European Union front, we are participating in EU's evaluation of alternate PNT system. We were part of the EU's demonstration day on 18 May at Joint Research Center at Ispra, Italy. We also had a chance to interact with several European Union officials, and members of parliament responsible for this initiative. We believe the EU will be releasing their final report and recommendations towards the end of this year or early 2023. In addition, the European Commission will be releasing the revised EU Radio Navigation Plan, which will incorporate recommendations from the test report. We feel confident that these reports would set the path for resilient PNT systems in Europe.

On the European Union front, we are participating in EU's evaluation of alternate PNT system. We were part of the EU's demonstration day on 18 May at Joint Research Center at Ispra, Italy. We also had a chance to interact with several European Union officials, and members of parliament responsible for this initiative. We believe the EU will be releasing their final report and recommendations towards the end of this year or early 2023. In addition, the European Commission will be releasing the revised EU Radio Navigation Plan, which will incorporate recommendations from the test report.

On the European Union front, we are participating in you use evaluation of ultimate PMT systems.

Part of the use demonstration D on the 18th of May and Joint Research Center at Italy.

We also had a chance to interact with several European Union officials and members of Parliament responsible for this initiative.

We believe that you will be releasing their final report and recommendations towards the end of this year or early 2023.

In addition, the European Commission will be releasing the revised EU radio navigation plant, which will incorporate recommendations from the test report.

We feel confident that these reports would set the path for resilient PNT systems in Europe.

We feel confident that these reports would set the path for resilient TNT systems in Europe .

Ganesh Pattabiraman: Beyond government, we're also seeing strong traction with our Pinnacle technology across various key industry verticals. We signed several strategic partnerships in the public safety arena this quarter. We already shared insights on both GeoComm and NGA 911 on our Q1 call. Let me dive into some of our newest opportunities. As you may have seen, AT&T FirstNet recently announced that the LAPD is equipping its officers with FirstNet-enabled devices to help elevate the LAPD's communication system with broader situational awareness technology enabled by NextNav's Pinnacle service. The FirstNet platform will decrease response times, enhance situational awareness, and increase officer safety. Launch will begin with implementation with the LAPD SWAT teams later this fall with an eventual goal of reaching the 12,000 or so sworn officers of the LAPD. This is a truly exciting development for FirstNet and for our Pinnacle service.

Beyond government, we're also seeing strong traction with our Pinnacle technology across various key industry verticals. We signed several strategic partnerships in the public safety arena this quarter. We already shared insights on both GeoComm and NGA 911 on our Q1 call. Let me dive into some of our newest opportunities. As you may have seen, AT&T FirstNet recently announced that the LAPD is equipping its officers with FirstNet-enabled devices to help elevate the LAPD's communication system with broader situational awareness technology enabled by NextNav's Pinnacle service.

Beyond government, we're also seeing strong traction with our clinical technology across the various key industry verticals.

We signed several strategic partnerships in the public safety Arena this quarter.

We already shared insights on both Joe Com, an NDA on R. N G and 911 on the Q1 call.

Let me dive into some of our newest up opportunities as.

As you may have seen AT&T firsthand recently announced the DLA PD is keeping its officers the person that enabled devices to help elevate the lapd's communications system, but broader situational awareness technology.

Enabled by <unk> Nast Pinnacle's serviced the Firstmerit platform decreased response times enhance situational awareness and increase officer safety.

The FirstNet platform will decrease response times, enhance situational awareness, and increase officer safety. Launch will begin with implementation with the LAPD SWAT teams later this fall with an eventual goal of reaching the 12,000 or so sworn officers of the LAPD. This is a truly exciting development for FirstNet and for our Pinnacle service.

The launch will begin the implementation the DLA PD Swat teams later this fall with the new <unk> goal of reaching the 12000 or so of sworn officers of the LAPD.

Is that truly exciting development for <unk> and for our clinical service. We see this as a significant validation of our offerings and believe we will see additional public safety providers take a similar approach in the future.

Ganesh Pattabiraman: We see this as a significant validation of our offering and believe we'll see additional public safety providers take a similar approach in the future. Beyond FirstNet, we recently announced partnership with LiveSafe, a provider of health, safety, and security solutions, Vitals Aware, a technology solution that bridges the information gap between the first responders and vulnerable people in times of crisis, and RapidDeploy, the industry's leading cloud-native emergency response platform. With LiveSafe, we're adding vertical location services to their GeoAware platforms to provide clients across public safety and emergency service sectors with a more accurate picture of the Z-axis location of its workforce, visitors, and resources across multi-story buildings. Similarly with Vitals Aware, we're providing safety and vertical location services for people living with intellectual development and mental health challenges through the.

We see this as a significant validation of our offering and believe we'll see additional public safety providers take a similar approach in the future. Beyond FirstNet, we recently announced partnership with LiveSafe, a provider of health, safety, and security solutions, Vitals Aware, a technology solution that bridges the information gap between the first responders and vulnerable people in times of crisis, and RapidDeploy, the industry's leading cloud-native emergency response platform.

Beyond <unk>, we recently announced partnership with let's say a provider of health safety and security solutions.

Widening somewhere a technology solution that reduced the information gap between the first responders and vulnerable people in times of crisis and rapid deploy the industry's leading cloud native emergency response platform.

With LiveSafe, we're adding vertical location services to their GeoAware platforms to provide clients across public safety and emergency service sectors with a more accurate picture of the Z-axis location of its workforce, visitors, and resources across multi-story buildings. Similarly with Vitals Aware, we're providing safety and vertical location services for people living with intellectual development and mental health challenges through the.

This safe, we're adding vertical location services to their job their platforms to provide clients across public safety and emergency service sectors at the more accurate picture of the <unk> location of its workforce visitors and resources across multi story buildings.

Similarly, with <unk>, we're providing safety and vertical location services for people living with intellectual development in mental health challenges through the company is working.

Ganesh Pattabiraman: Company's Vitals App.

Company's Vitals App.

The company's guidance.

<unk>.

Ganesh Pattabiraman: And finally, in early August, we announced two additional partnerships with CentralSquare Technologies and Valor Systems. CentralSquare is an industry leader in public sector technology and is partnering with us to integrate Z-axis vertical location capabilities into its computer-aided dispatch or CAD products and mobile suite of public safety software. This is a significant opportunity for us as CentralSquare is the leader on the dispatch side and works with over 75% of public safety agencies nationwide, equipping them with real-time data and situational awareness to decrease response times on both the desktop and mobile application.

And finally, in early August, we announced two additional partnerships with CentralSquare Technologies and Valor Systems. CentralSquare is an industry leader in public sector technology and is partnering with us to integrate Z-axis vertical location capabilities into its computer-aided dispatch or CAD products and mobile suite of public safety software. This is a significant opportunity for us as CentralSquare is the leader on the dispatch side and works with over 75% of public safety agencies nationwide, equipping them with real-time data and situational awareness to decrease response times on both the desktop and mobile application.

And finally in early August we announced two additional partnerships with Central square technologies in Valor system Central Square is an industry leader in public sector technology and is partnering with us to integrate the exits vertical location capabilities into its computer aided dispatch, our CAD products and mobile suite of public safety software.

This is a significant opportunity.

For us our Central square is the leader on the dispatch side and works with over 75% of public safety agencies nationwide keeping them with real time data and situational awareness to decrease response times on both the desktop and mobile applications.

Ganesh Pattabiraman: I should note that with these collaborations we now have partners across the entire public safety ecosystem. Starting with our partnership with the nationwide wireless carrier for 911 emergency calls through to the dispatch center to first responders, we cover every aspect of the public safety network. Our ability to provide end-to-end support is a huge milestone for our business business and illustrates our continued commitment to meet the needs of this industry. Beyond public safety, we have also expanded our footprint further in areas like gaming and construction. Of note, we recently started working with one of the leaders in location verification services. Leveraging our vertical location capabilities, our partner will be able to identify the location of a user in various unique scenarios.

I should note that with these collaborations we now have partners across the entire public safety ecosystem. Starting with our partnership with the nationwide wireless carrier for 911 emergency calls through to the dispatch center to first responders, we cover every aspect of the public safety network. Our ability to provide end-to-end support is a huge milestone for our business business and illustrates our continued commitment to meet the needs of this industry. Beyond public safety, we have also expanded our footprint further in areas like gaming and construction.

I should note that with these collaborations we now have partners across the entire public safety ecosystem, starting with our partnership with the nationwide wireless carrier for nine month non emergency calls through to the dispatch center to purchase founders. We cover every aspect of the public safety network, our ability to provide end to end.

Supported a huge milestone for our business and illustrates our continued commitment to meet the.

The needs of this industry.

Beyond public safety, we have also expanded our footprint further the navy like gaming and construction.

Of note, we recently started working with one of the leaders in location verification services. Leveraging our vertical location capabilities, our partner will be able to identify the location of a user in various unique scenarios.

Of note. We recently started working with one of the leaders in location verification services.

<unk>, our vertical location capabilities, our partner will be able to identify the location of our user and various unique scenarios.

Ganesh Pattabiraman: One great example is online gaming since many users try to spoof or fake their location to access an online gambling platform out of state. Our technology will allow our partners to easily identify where the user is located and confirm whether they should have access to a specific site.

One great example is online gaming since many users try to spoof or fake their location to access an online gambling platform out of state. Our technology will allow our partners to easily identify where the user is located and confirm whether they should have access to a specific site.

One Great example is online gaming since many users try to spoof or bake their location to access an online gambling platform out of state our technology will allow our partners to easily identify better use is located and confirm whether they should have access to a specific site.

Yes.

Ganesh Pattabiraman: We are also bringing our vertical location services to the construction industry. We recently paired up with VOS Systems to bring vertical location capabilities to the company's core product line. Under this agreement, we will spearhead the first connected worker solution to have vertical location capabilities providing increased employee safety, improved workplace efficiency, and faster emergency response times to affected workers. The addition of our vertical location service will enhance VOS Systems offerings without requiring additional localized or on-premise infrastructure. It also provides location intelligence in multi-story buildings and locations, even in areas without Wi-Fi or Internet access like construction sites. While we're excited about the vast opportunity we have in the US, we're also making great strides internationally. We recently announced a commercial agreement for the nationwide deployment of 3D geolocation services across Japan with MetCom.

We are also bringing our vertical location services to the construction industry. We recently paired up with VOS Systems to bring vertical location capabilities to the company's core product line. Under this agreement, we will spearhead the first connected worker solution to have vertical location capabilities providing increased employee safety, improved workplace efficiency, and faster emergency response times to affected workers.

We had also bringing a vertical location services. The construction industry. We recently paired up with locked systems to bring vertical location capabilities of the company's core product line under.

Under this agreement.

Will spearhead the first connected worker solutions have vertical location capabilities, providing increased employee safety improved workplace efficiency and faster emergency response times to affected workers.

The addition of our vertical location service will enhance VOS Systems offerings without requiring additional localized or on-premise infrastructure. It also provides location intelligence in multi-story buildings and locations, even in areas without Wi-Fi or Internet access like construction sites. While we're excited about the vast opportunity we have in the US, we're also making great strides internationally. We recently announced a commercial agreement for the nationwide deployment of 3D geolocation services across Japan with MetCom.

The addition of our vertical location service will enhance what's systems offering without requiring additional localize our on premise infrastructure. It also provides location intelligence and multi story buildings and locations even in areas without Wi Fi our internet access like construction sites.

While we're excited about the vast opportunity we have in the U S. We're also making great strides Internet internationally, we recently announced a commercial agreement for the nationwide deployment of PD geolocation services across Japan Metcom as.

Ganesh Pattabiraman: As part of the agreement, Pinnacle will enhance the experience of geolocation services from two dimensions to include a vertical third dimension mentioned, helping to better serve unmet needs in both public and commercial sectors. Importantly, the partnership will be the first large scale commercial deployment of NextNav's Pinnacle technology outside of the US. MetCom is expected to start commercial operations in October of 2022 following a successful pilot effort in Tokyo this past year. Pinnacle will first be deployed in the densely populated Tokyo and Osaka metropolitan areas with the plan to expand coverage to major cities across Japan in 2023. As part of this effort, MetCom will also be leading more TerraPoint pilots across Japan while they continue to make steady progress towards the approval of 5MHz of spectrum in the Japanese market.

As part of the agreement, Pinnacle will enhance the experience of geolocation services from two dimensions to include a vertical third dimension mentioned, helping to better serve unmet needs in both public and commercial sectors. Importantly, the partnership will be the first large scale commercial deployment of NextNav's Pinnacle technology outside of the US. MetCom is expected to start commercial operations in October of 2022 following a successful pilot effort in Tokyo this past year. Pinnacle will first be deployed in the densely populated Tokyo and Osaka metropolitan areas with the plan to expand coverage to major cities across Japan in 2023.

As part of the agreement Pinnacle will enhance the experience of geolocation services from two dimensions to include a vertical third dimension.

Helping to better serve unmet needs in both public and commercial sectors.

Accordingly, the partnerships will be the first large scale commercial deployment of <unk> clinical technology outside of the U S.

Metcom is expect to start commercial operations in October of 2022. Following the successful pilot effort in Tokyo. This past year clinical will first be deployed in the density populated Tokyo and Osaka metropolitan areas with a plan to expand coverage to major cities across Japan in 2023 as.

As part of this effort, MetCom will also be leading more TerraPoint pilots across Japan while they continue to make steady progress towards the approval of 5MHz of spectrum in the Japanese market.

As part of this effort Metcom will also be leading more terror point pilots across Japan, while they continue to make steady progress towards the approval of five megahertz of spectrum in the Japanese market.

Ganesh Pattabiraman: I should also note that MetCom recently raised nearly $6 million towards this expansion with Drone Fund, a leading VC drone funding provider leading the round along with Kyocera and SECOM. NextNav also participated with about $1.1 million to help advance this project. This activity will show up in our Q3 financial as it closed in the month of July. Looking ahead, we continue to hold active discussions with multiple countries and see growing interest for our vertical location services. We feel confident in the direction of these discussions and expect to have additional opportunities to announce in the coming months. Beyond our international work on TerraPoint, we recently partnered with GCT Semiconductor for the successful integration of TerraPoint's advanced location technology into the company's LTE chipset.

I should also note that MetCom recently raised nearly $6 million towards this expansion with Drone Fund, a leading VC drone funding provider leading the round along with Kyocera and SECOM. NextNav also participated with about $1.1 million to help advance this project. This activity will show up in our Q3 financial as it closed in the month of July. Looking ahead, we continue to hold active discussions with multiple countries and see growing interest for our vertical location services. We feel confident in the direction of these discussions and expect to have additional opportunities to announce in the coming months.

I should also note that Metcom recently raised nearly $6 million towards this.

Expansion, John Fund, a leading VC drone funding provider, leading the round along with Kyocera and satcom.

<unk> also participated with about $1 $1 million to help advance this project.

This activity will show up in our third quarter financial as it closed in the month of July .

Looking ahead, we continue to hold active discussions with multiple countries and see growing interest for our vertical location services.

Are you confident in the direction of these discussions and expect to have additional opportunities to announce in the coming months.

Beyond our international work on TerraPoint, we recently partnered with GCT Semiconductor for the successful integration of TerraPoint's advanced location technology into the company's LTE chipset.

Beyond our international work on tariff point, we recently partnered with GCT semiconductors for the successful integration of care points advanced location technology into the Companys LTE chipset.

Ganesh Pattabiraman: GCT, which is a leading designer and supplier of advanced 4G and 5G solutions, will offer resilient 3D GPS equivalent performance into its LTE 5G chips. The integration enables NextNav's TerraPoint capability to be brought into mass market applications such as timing for critical infrastructure, position navigation for cars, IoT, and drone eVTOL markets in GPS challenged environments. By incorporating TerraPoint capabilities within the commercial GCT chipset, we reached a milestone in demonstrating that TerraPoint signals can be received on an LTE GPS capable chipset hardware, all in a compact form factor suitable for mass market devices. GCT's scale and proven track record of delivering highly programmable chipset will ensure broad availability of the high quality 3D indoor positioning delivered by our TerraPoint network. We plan on mass market customer trials and commercial proof of concepts in the coming months leveraging the company's chipsets.

GCT, which is a leading designer and supplier of advanced 4G and 5G solutions, will offer resilient 3D GPS equivalent performance into its LTE 5G chips. The integration enables NextNav's TerraPoint capability to be brought into mass market applications such as timing for critical infrastructure, position navigation for cars, IoT, and drone eVTOL markets in GPS challenged environments. By incorporating TerraPoint capabilities within the commercial GCT chipset, we reached a milestone in demonstrating that TerraPoint signals can be received on an LTE GPS capable chipset hardware, all in a compact form factor suitable for mass market devices.

GCT, which is a leading designer and supplier of advanced <unk> and <unk> solutions will offer resilient <unk> equaling performance into its LTE <unk> chips.

The integration enables next tariff point capability to be brought into mass market applications, such as timing for critical infrastructure position navigation for cars Iot and drone.

Top markets and GPS challenged environments.

By incorporating <unk> capabilities within the commercial GCT chipset.

Reached a milestone in demonstrating the tariff point signals can be received under an LTE GPS capable chipset hardware all in a compact form factor suitable for mass market device <unk>.

GCT's scale and proven track record of delivering highly programmable chipset will ensure broad availability of the high quality 3D indoor positioning delivered by our TerraPoint network. We plan on mass market customer trials and commercial proof of concepts in the coming months leveraging the company's chipsets.

<unk> scale and proven track record of delivering highly programmable chipset will ensure broad availability of the high quality <unk> indoor positioning delivered by our <unk> network.

We plan on mass market customer trials and commercial proof of concepts in the coming months leveraging the companys chipsets.

Ganesh Pattabiraman: And I should note that the chipset flexibly supports a range of frequencies including all of the LTE bands worldwide for further implementation across global markets, including the 920-928 MHz spectrum owned by NextNav in the US as well as the 855-860 MHz where NextNav's TerraPoint system operates in Japan. As a final comment about spectrum, we recognize the strategic value of our spectrum. It is sub-gigahertz with nearly 3-5 MHz bandwidth that's available. Therefore we're always looking at ways to increase our spectrum efficiency and make the best use of this spectrum asset as applications become necessary. Overall, it is yet another exciting and busy quarter for our business and we continue to build on the solid traction we're seeing across industry verticals. Our pipeline remains strong and we remain in active conversations with various players across industry verticals.

And I should note that the chipset flexibly supports a range of frequencies including all of the LTE bands worldwide for further implementation across global markets, including the 920-928 MHz spectrum owned by NextNav in the US as well as the 855-860 MHz where NextNav's TerraPoint system operates in Japan. As a final comment about spectrum, we recognize the strategic value of our spectrum. It is sub-gigahertz with nearly 3-5 MHz bandwidth that's available. Therefore we're always looking at ways to increase our spectrum efficiency and make the best use of this spectrum asset as applications become necessary.

And I should note that the chipset effectively supports a range of frequencies, including all of the LTE bands worldwide for further implementation across global markets, including the 929 28 megahertz spectrum owned by next time in the U S.

Well at the 855% to 860 megahertz next NASS turbine system operates in Japan.

And as a final comment about spectrum.

We recognize the strategic value of our spectrum at a sub gigahertz with.

Nearly $3 five megahertz bandwidth that's available.

Therefore, we're always looking at ways to increase our spectrum efficiency and make the best use of this.

Spectrum asset.

As applications become.

Overall, it is yet another exciting and busy quarter for our business and we continue to build on the solid traction we're seeing across industry verticals. Our pipeline remains strong and we remain in active conversations with various players across industry verticals.

Sorry.

Ganesh Pattabiraman: We're looking to fully realize the benefit of our resilient 3D geolocation capabilities. With that, let me turn things over to Chris for a review of the financials. Thanks, Ganesh. Good morning, everyone.

We're looking to fully realize the benefit of our resilient 3D geolocation capabilities. With that, let me turn things over to Chris for a review of the financials.

With that let me turn things over to Chris for a review of the financials Chris.

Chris Gates: Thanks, Ganesh. Good morning, everyone.

Thanks, Good morning, everyone, let me jump right into the numbers. So we can get to your questions.

Chris Gates: Let me jump right into the numbers so we can get to your questions, starting with our top line. In Q2 we recognized revenue of $1.4 million and an operating loss of $17 million. This number includes $884,000 depreciation and amortization and $6.8 million in stock-based compensation expense. Our total operating expenses are $18.4 million in the quarter and net income was $0.8 million in the quarter. In addition to the previous non-cash charges, net income included a non-cash income element of $17.8 million related to a change in the fair value of our warrant liability. For H1 we reported revenue of $2.6 million and an operating loss of $33.1 million, which includes $1.8 million of depreciation and amortization and $14 million in stock-based compensation expense.

Let me jump right into the numbers so we can get to your questions, starting with our top line. In Q2 we recognized revenue of $1.4 million and an operating loss of $17 million. This number includes $884,000 depreciation and amortization and $6.8 million in stock-based compensation expense. Our total operating expenses are $18.4 million in the quarter and net income was $0.8 million in the quarter. In addition to the previous non-cash charges, net income included a non-cash income element of $17.8 million related to a change in the fair value of our warrant liability.

Starting with our top line in second quarter, we recognized revenue of $1 $4 million and an operating loss of $17 million. This number includes 884000, depreciation and amortization and $6 8 million in stock based compensation expense.

Our total operating expenses were $18 4 million in the quarter and net income was <unk> 8 million in the quarter. In addition to the previous noncash charges. Net income included a noncash income element of $17 $8 million related to a change in the fair value of our warrant liability.

For H1 we reported revenue of $2.6 million and an operating loss of $33.1 million, which includes $1.8 million of depreciation and amortization and $14 million in stock-based compensation expense.

For the first six months, we reported revenue of $2 6 million and an operating loss of $33 1 billion, which includes $1 8 million depreciation and amortization and $14 million and stock based compensation expense total operating loss for the six month period was $33 1 million and a net loss.

Chris Gates: Total operating loss for the six-month period was $33.1 million, and our net loss was $8.9 million. As Gary mentioned, we are continuing to prudently manage our expenses to ensure we're well positioned to continue on our growth trajectory, especially considering the inflationary environment and market volatility. Our operating cash usage for the quarter was $10.6 million, an increase of 15% compared to the first quarter. This is predominantly related to incremental hiring as we grow our business and customer base, although, as Gary mentioned, on a significantly.

Total operating loss for the six-month period was $33.1 million, and our net loss was $8.9 million. As Gary mentioned, we are continuing to prudently manage our expenses to ensure we're well positioned to continue on our growth trajectory, especially considering the inflationary environment and market volatility. Our operating cash usage for the quarter was $10.6 million, an increase of 15% compared to the first quarter. This is predominantly related to incremental hiring as we grow our business and customer base, although, as Gary mentioned, on a significantly.

It was $8 9 million.

As Gary mentioned, we are continuing to prudently manage our expenses to ensure we are well positioned to continue on our growth trajectory, especially considering the inflationary environment and market volatility.

Our operating cash usage for the quarter was $10 6 million, an increase of 15% compared to the first quarter.

This is predominantly related to incremental hiring as we grow our business customer base, although as Gary mentioned on a significantly.

Chris Gates: To ensure that we're managing our expenses appropriately in light of the inflationary environment, we have seen somewhat higher new employee and equipment costs. They are not material at this time. We've also been able to manage potential supply chain issues to ensure we do not encounter any delays in our operations or planned deployment activities. Our balance sheet remains debt-free and we had $82.5 million in cash at June 30, providing us with ample capital flexibility as we navigate the current market environment. This balance sheet strength, combined with our existing Nationwide Pinnacle Network IP portfolio, 2.4 billion MHz-POP spectrum, continues to provide us with an extremely solid foundation as we grow our business. With that said, we're continuing to manage our business while balancing our growth needs with liquidity and capital flexibility for the quarter.

Moderated pace to ensure that we.

To ensure that we're managing our expenses appropriately in light of the inflationary environment, we have seen somewhat higher new employee and equipment costs. They are not material at this time. We've also been able to manage potential supply chain issues to ensure we do not encounter any delays in our operations or planned deployment activities. Our balance sheet remains debt-free and we had $82.5 million in cash at June 30, providing us with ample capital flexibility as we navigate the current market environment.

Our balance sheet remains debt free and we had $82 $5 million in cash at June 30, providing us with ample capital flexibility as we navigate the current market environment. This balance sheet balance sheet strength combined with our existing nationwide clinical network IP portfolio of $2 4 billion megahertz pop spectrum continues to provide us.

This balance sheet strength, combined with our existing Nationwide Pinnacle Network IP portfolio, 2.4 billion MHz-POP spectrum, continues to provide us with an extremely solid foundation as we grow our business. With that said, we're continuing to manage our business while balancing our growth needs with liquidity and capital flexibility for the quarter.

With an extremely solid foundation as we grow our business, but that we're continuing to manage our business well managed to validate our growth needs with liquidity and capital flexibility for the quarter, we've achieved additional awareness and adoption of our clinical services, especially in the key public safety vertical as Ganesh described in some detail and are particularly encouraged by government driven.

Chris Gates: We've achieved additional awareness and adoption of our Pinnacle service, especially in the key public safety vertical as Ganesh described in some detail. And are particularly encouraged by government driven activity related to resilient PNT in our TerraPoint business. And now let me turn the call over to the operator for your questions.

We've achieved additional awareness and adoption of our Pinnacle service, especially in the key public safety vertical as Ganesh described in some detail. And are particularly encouraged by government driven activity related to resilient PNT in our TerraPoint business. And now let me turn the call over to the operator for your questions.

Related to resilient TNT in our tariff pointed.

And now let me turn the call over to the operator for your questions.

Operator: To ask a question, please press star one on your telephone keypad. Your first question is from Mike Crawford of B. Riley Securities. Please go ahead. Your line is open.

You'll ask a question. Please press star one on your telephone keypad.

Your first question is from Mike Crawford of B Riley Securities. Please go ahead. Your line is open.

Mike Crawford: Thank you. A number of questions.

Thank you number of questions.

Mike Crawford: You know, Chris, thanks for that financial detail. It sounds like you have specific numbers. Why are they not filed with the press release this morning?

You know, Chris, thanks for that financial detail. It sounds like you have specific numbers. Why are they not filed with the press release this morning?

One Chris Thanks for the financial detail. It sounds like you have a specific number is that why are they not filed.

With the press release this morning.

Chris Gates: We're filing our 10-Q after close this afternoon, along with, and actually, you'll also see one other filing, a registration statement going along with an amendment to our.

We're filing our Q.

After close this afternoon.

Along with.

And actually you also see.

One other filing a registration statement going along with that.

An amendment to our.

Chris Gates: To our initial S-1 filing.

To our initial S-1 filing.

Two our initial S. One filing.

Mike Crawford: Okay. I'm sure I'm not the only one that appreciate an income statement, if not balance sheet or statement of cash flows. You know, before earnings call. Next time, can you talk about.

Okay, and I'm, sorry, I'm not the only one that I appreciate the income statement, if not balance sheet or statement of cash flows before our earnings call next time.

Can you talk about.

<unk>.

Mike Crawford: The progress on E911 with your one carrier partner and status with others given this?

The progress on <unk> 911, what tier one carrier partner.

Status with others given.

Uh huh.

Mike Crawford: I guess maybe competing argument about vertical location ability of competing technologies at CTIA, the CTIA seemed to put forth earlier this year.

I guess maybe competing argument about vertical location ability of competing technologies at CTIA, the CTIA seemed to put forth earlier this year.

Just maybe competing argument.

About vertical rotation ability of competing technologies at Cts.

<unk> seen them put forth earlier this year.

Gary Parsons: Yeah. You want to hit update on that? Yeah.

Yes.

Update on that.

Ganesh Pattabiraman: So, in terms of our engagement with our carrier partner on the 911 service, we are well on track working with our partner to launch devices later this year that provide Z-axis capability for 911 purposes. And.

So.

In terms of our engagement with our.

Carrier partner on the 911 service, we are well on track.

Looking with our partner to <unk>.

Launched devices later this year that provide the access capability for.

911 purposes.

And and.

Ganesh Pattabiraman: So you know nothing in that.

So you know nothing in that.

So.

In that.

Ganesh Pattabiraman: In those plans have changed. We did note the filing from CTIA, and we fundamentally do disagree with.

In those plans have changed. We did note the filing from CTIA, and we fundamentally do disagree with.

In those plans have changed.

Did not the.

Filing from CTO I E.

And we fundamentally do disagree with.

The.

Ganesh Pattabiraman: What was captured in that, and in terms of meeting the FCC requirements, we do believe this is now in the hands of the FCC to make a final determination. But I will say that we are now engaged with multiple carriers in meeting their 911 obligations.

What was captured in that, and in terms of meeting the FCC requirements, we do believe this is now in the hands of the FCC to make a final determination. But I will say that we are now engaged with multiple carriers in meeting their 911 obligations.

The what was captured in that and.

In terms of meeting the FCC requirements.

We do believe this is now in the hands of the FCC to make a final determination.

But I will say that we are now engaged with multiple carriers in meeting their 911 obligations.

Ganesh Pattabiraman: We expect to make announcements to that effect in the coming months.

We expect to make announcements to that effect in the coming months.

And we expect to make announcements to that effect in the coming months.

[Analyst] (RF Lafferty): Great.

Mike Crawford: Great.

Mike Crawford: Thank you, Ganesh.

Thank you, Ganesh.

Great. Thank goodness.

Uh huh.

Mike Crawford: Gary, thanks for talking about the spectrum resource. Is there a specific 5MHz block that you've identified within your holdings for TerraPoint? But more importantly, what would then be the excess 3MHz block relative to LTE band 8, which you know it's a 45MHz wide band, but there's that gap between 915MHz and 925MHz?

Gary, thanks for talking about the spectrum resource. Is there a specific 5MHz block that you've identified within your holdings for TerraPoint? But more importantly, what would then be the excess 3MHz block relative to LTE band 8, which you know it's a 45MHz wide band, but there's that gap between 915MHz and 925MHz?

And Gary Thanks for talking about the spectrum resource.

Is there.

A specific <unk>.

Five megahertz block that you've identified within your holdings for its airplanes.

But more importantly, what would then be the excess.

Three megahertz block rather.

Relative to.

LTE band eight which.

45 megahertz wide band, but there is that gap between 915 and 925.

Gary Parsons: Yeah. Well, actually, yes, there are specific 5MHz and 3MHz. We actually, a lot of people, we talk about 8MHz contiguous. That actually is two separate licenses that happen to be side by side, the B block and the C block. One's a 3MHz, essentially, and one's a 5MHz, and they are side by side. We did receive permission from the SEC many years ago to use that flexibly in the sense that we can either be using them combined into a combined 8MHz, we can even overlap between the two, or we can use them separately. So what we actually do, from each one of our TerraPoint beacons that are operational today, they actually send out two separate signals, one on each one of those bands, but they are separate signals. So it sends both.

Yeah.

Well actually yes, there are specific.

Five megahertz and free megahertz.

We actually a lot of people, we talk about eight megahertz contiguous that actually has two separate licenses that happened to be side by side.

The D block and the C block ones that one's a free essentially and one for Bob.

And they are side by side, we did receive permission from the FCC many years ago to use that flexibly in the sense that we can either be using them combined into a combined eight megahertz.

We did receive permission from the SEC many years ago to use that flexibly in the sense that we can either be using them combined into a combined 8MHz, we can even overlap between the two, or we can use them separately. So what we actually do, from each one of our TerraPoint beacons that are operational today, they actually send out two separate signals, one on each one of those bands, but they are separate signals. So it sends both.

We can even overlap between the two.

Or we can use them separately.

What we actually do from each one of our tariff point beacons that are operational today, they actually send out two separate signals.

One on each one of those bands, but they are separate signals.

And so it tends vote will use them in various ways of.

Gary Parsons: We use them in various ways of both more quickly gaining the signal asset and then for more accuracy from the larger bandwidth. But that gives us a lot of flexibility. As we've noted in the past, obviously what's going forward in Japan is only 5, because we can interleave the two signals on the 5 without having to go between the two separate ones. But right now, currently we're occupying both bands. But, yes, those are identified bands that we do know, each one on a separate license.

We use them in various ways of both more quickly gaining the signal asset and then for more accuracy from the larger bandwidth. But that gives us a lot of flexibility. As we've noted in the past, obviously what's going forward in Japan is only 5, because we can interleave the two signals on the 5 without having to go between the two separate ones. But right now, currently we're occupying both bands. But, yes, those are identified bands that we do know, each one on a separate license.

Both more quickly gaining.

Gaining the signal asset and then four more accuracy from the larger bandwidth, but that gives us a lot of flexibility.

As we've noted in the past, obviously whats going forward in Japan is only five.

Because we can enter leave.

<unk> signals.

On the five.

Without having to go between the two separate ones.

But right now currently we're occupying both bands.

But yes those are identified bands that we do know each one on a separate license.

Mike Crawford: Okay, thank you. And then last question for me is, is there any update on your Satelles partnership regarding maybe extending or to more rural areas, backup timing signal?

Okay. Thank you and then last question for me is.

<unk>.

Is there any update.

On your <unk> partnership regarding maybe extending or.

It's a more rural areas.

Backup timing signal.

Okay.

Ganesh Pattabiraman: I can address that.

Yes.

Gary Parsons: First, let me say that first, I don't want to call it a partnership. We worked together on a demonstration, you know, for the government to show that we could do it in a coordinated basis. Then, candidly, I'll have to say that we continue on an ongoing basis, not just with Satelles, but, I mean, across the industry, to look at creative ways that we can interleave our signals with other technologies, particularly looking for ways that we can improve the performance or reduce the cost of how we may deploy. So that's kind of an ongoing issue that we work with, not only with those in the industry, our own internal technology development, and with government agencies. I just wanted to be careful before we, you know, characterize it as a partnership with Satelles.

First I, but let me let me, let me say that first.

Don't want to call. It at partnership we worked together on the demonstration.

For the government to show that we could do it in a coordinated basis and then candidly I I'll have to say that.

We continue on an ongoing basis, not just with the tell us, but I mean.

Ross the industry to look at creative ways that we can enter leave our signals.

Other technologies.

And I'm, particularly looking for ways that we can improve the performance.

Or reduce the cost of how we may deploy so thats kind of an ongoing issue that we work with.

Not only with those in the industry.

Our own internal technology development and with government agencies.

I just wanted to be careful before we, you know, characterize it as a partnership with Satelles.

Just wanted to be careful before we.

I will characterize it as a partnership was to tell us.

Mike Crawford: Okay, thank you, Greg.

Okay. Thank you guys.

Operator: Your next question is from Timothy Horan of Oppenheimer. Please go ahead. Your line is open.

Your next question is from Timothy Horan of Oppenheimer. Please go ahead. Your line is open.

Gary Parsons: Thanks, guys. Can you give us any sense on the cash burn per quarter going forward, and maybe also any sense on the revenue for the second half of the year? Are you expecting any new revenue streams kind of coming in? Any color would be great. Well, I'll let Chris address the cash burn because obviously I think we made a couple of statements today that we're being careful to make sure we control that.

Timothy Horan: Thanks, guys. Can you give us any sense on the cash burn per quarter going forward, and maybe also any sense on the revenue for the second half of the year? Are you expecting any new revenue streams kind of coming in? Any color would be great. Well, I'll let Chris address the cash burn because obviously I think we made a couple of statements today that we're being careful to make sure we control that.

Thanks, guys could you give us any sense on the cash burn per quarter going forward.

And maybe.

Any also any sense on the revenue for the second half of the year.

Are you expecting any new revenue streams kind of coming in any color would be great.

Well I'll, let Chris address.

The cash burn because obviously I think we've made a couple of statements today, where we're being careful to make sure we control that.

Gary Parsons: And that doesn't ramp up to ramp up. So, you know, likely fairly consistent with what we've seen before, we will have some capital that we're expending as we're building out some additional initial networks in some additional markets. But from a revenue guidance standpoint, you know, we're, I hate to say it guys, but you know, we're still not providing guidance. So we'd rather not get into what to expect in the coming quarter or for the remainder of the year at this point in time. It's just such a new service and such a new adoption trajectory that occurs. We're clearly seeing an awful lot of platforms and partners adopting the service, but how quickly that matures into actual revenue, coming out of each one of those, is still a little bit of an experience we're going through.

And then that doesn't.

<unk> up two to rapidly.

So likely fairly consistent with what we've seen before we will have some some capital that we're extending as we're building out some additional <unk>.

Initial networks in some additional markets.

But from a revenue guidance standpoint.

I hate to say it guys, but.

We're still not providing guidance.

So we'd rather not get into.

What to expect in the coming quarter or for the remainder of the year at this point in time, it's just such a new service and such a.

New adoption.

Trajectory that occurs we're clearly seeing an awful lot.

Platforms and partners adopting the service, but how quickly that matures into actual revenue coming out of each one of those is still a little bit of.

With an experienced we're going through.

Gary Parsons: Chris, do you want to talk any more about capital or the?

Chris, do you want to talk any more about capital or the?

Chris do you want to talk any more about capital or.

Chris Gates: Yeah, I can see our quarterly operating kind of cash expenses in Q1 were $9.1 million. In Q2, $10.6 million, about a 15% increase. Again, attributable predominantly to modest amount of headcount expansion. You know, as we ramp up some of our operations and capabilities, we may see that tick up a little bit as we work through the rest of the year. But we're keeping a very close eye on how we expand our expense base. And as Gary mentioned, there will be some CapEx in the second half of the year associated with some market expansion. Some of that will go into Q1 and you'll see that start to manifest.

Yeah. Thanks, Brian .

I can say.

Our quarterly operating.

Cash expenses in the first quarter were $9 1 million in the second quarter of $10 6 million about a 15% increase again attributable predominantly to modest amount of head count expansion.

As we ramp up some of our operations and capabilities.

They see that tick up a little bit as we work through the rest of the year, but we're keeping a very close eye on how we expand our expense base.

As Gary mentioned, there will be some capex in the second half of the year associated with some market expansion.

That will go into the first quarter.

You'll see that start to manifest.

Chris Gates: In our Q3 financial.

In our Q3 financial.

And our and our <unk> and our <unk> financials.

Gary Parsons: Great. And then on the timing of the government and maybe the structure.

Timothy Horan: Great. And then on the timing of the government and maybe the structure.

Great and then on the timing of the government and maybe the structure.

Gary Parsons: Do you think you can get some upfront grants from them to do a build out and you know, your best guess on how much and the timing for something like that?

Do you think you can get some upfront grants from them to do a build out and you know, your best guess on how much and the timing for something like that?

<unk>.

Do you think you can get some upfront grants from them to do build out and.

Your best guess on how much and in the timing for something like that.

Ganesh Pattabiraman: Yeah, let me talk to that. I mean, I think we are definitely seeing the government.

Yeah, let me.

Talk to that so so I mean, I think we are definitely seeing the government.

Ganesh Pattabiraman: You know, considering grants and revising their procurement process to include.

You know, considering grants and revising their procurement process to include.

Considering grants and.

And revising their procurement process to include.

Ganesh Pattabiraman: PNT resilience. These grants are distributed at the state level, and definitely there's a potential to.

PNT resilience. These grants are distributed at the state level, and definitely there's a potential to.

PMT resilience.

These grants are distributed at the state level.

And definitely there is a potential too.

<unk>.

Ganesh Pattabiraman: Leverage those grants to support resilient infrastructure such as ours to be part of it. We don't know the extent of that, whether it be, you know, 50% or 25% or greater. And I think that will become clear once the grants come out and the directives around them, but we certainly do see those coming out. I think.

Leverage those grants to support resilient infrastructure such as ours to be part of it. We don't know the extent of that, whether it be, you know, 50% or 25% or greater. And I think that will become clear once the grants come out and the directives around them, but we certainly do see those coming out. I think.

The leverage those grants to support resilient infrastructure, such as ours can be part of it we don't know the extent of that whether it would be.

No.

50% or.

25% or.

Greater.

And I think that will become clear once the grants come out in the director's around them.

But we certainly do see those coming out.

I think.

We expect that to be let's call. It in the next.

Ganesh Pattabiraman: We expect that to be, let's call it in the next.

We expect that to be, let's call it in the next.

Ganesh Pattabiraman: Nine-month type of horizon. As we've seen with the FAA framework, we expect other similar agencies to provide those types of.

Nine month type of horizon as.

Nine-month type of horizon. As we've seen with the FAA framework, we expect other similar agencies to provide those types of.

As we've seen with the FAA.

Framework, we expect other similar agencies to provide those types of.

Ganesh Pattabiraman: Directives and.

Directives and.

Direct votes and.

Ganesh Pattabiraman: Frameworks for incorporating P and T resilience into those grant programs.

The frameworks for incorporating PMT resilience into into those.

Grant programs.

Okay.

Gary Parsons: It's actually kind of unfortunate. You hate that it has to be a war to get the government's attention. But undeniably the Ukraine conflict has in fact focused government's attention, not only United States, but again across Europe, particularly on this. And I think by, you know, at this point now, an awful lot of the congressional committee committees and relevant jurisdictions, as well as individual senators and members that are associated with GPS are focused on this issue. And all three of the primary departments, DoD, DHS, and DOT are actively now engaged in this issue.

Tax rate kind of unfortunate you hate you hate that it has to be a war.

To get the government's attention, but undeniably.

Ukraine conflict has in fact focused the government's attention not only United States.

Again across Europe , particularly.

All of this and I think by you know at this point now an awful lot of the congressional committees and relevant jurisdictions as well as individual senators and members that are.

Associated with GPS.

Our focus on this issue.

And all three of the primary departments D O D D.

Yes.

Yeah.

<unk> actively now engaged in this issue.

Gary Parsons: Thanks a lot, guys.

Thanks, a lot guys.

Operator: Your next question is from Jamie Perez of RF Lafferty. Please go ahead. Your line is open.

Your next question is from Jamie Perez of R. F. Lafferty. Please go ahead your line is open.

[Analyst] (RF Lafferty): Thank you. Good day, everybody, and thanks for taking my call. As far as the government contract, I know. I mean, 2025 is only about three years away. I mean, how does that change the strategies for TerraPoint? I mean, does it accelerate it? Because, like I said, it's only about three years away. Maybe could comment on that.

Jamie Perez: Thank you. Good day, everybody, and thanks for taking my call. As far as the government contract, I know. I mean, 2025 is only about three years away. I mean, how does that change the strategies for TerraPoint? I mean, does it accelerate it? Because, like I said, it's only about three years away. Maybe could comment on that.

Okay. Thank you good day, everybody and thanks for taking my call.

As far as the government contract I know I mean 2025 is only about three years away I mean, how does that change your strategy for Turbo point, I mean does it accelerate it because like I said, it's only about three years away, maybe you could comment on that.

Gary Parsons: Jamie? That's probably the question of the day. It is candidly one that we are looking at very strategically.

Jamie that's probably the question of the day.

Candidly one that we are looking at.

Very strategically.

Gary Parsons: With the board directors, because, you know, there is no doubt when we laid out our initial plans that was expected to be, you know, a much longer process.

With the board directors, because, you know, there is no doubt when we laid out our initial plans that was expected to be, you know, a much longer process.

With the board of directors.

Because.

There is no doubt.

When we laid out our initial plans that was expected to be.

And much longer process.

Gary Parsons: Yet we're seeing the ability, the openness of the governance and not only here but upon.

Yet we're seeing the ability, the openness of the governance and not only here but upon.

And yet we're seeing the ability.

The openness of the governments and not only here but abroad.

Gary Parsons: Some potential things we can do with our technology to maybe even speed that process up without entailing the sort of large capital expenditures that we originally envisioned to have a fully fleshed out.

Some potential things we can do with our technology to maybe even speed that process up without entailing the sort of large capital expenditures that we originally envisioned to have a fully fleshed out.

And some.

Potential things, we can do with our technology to maybe even speed that process up without entailing the sort of.

Large capital expenditures that we originally envisioned to have a fully.

Fleshed out.

Gary Parsons: Three-dimensional PNT-type capability. So we're exploring all of those options. But there's no doubt, I mean one thing we've learned as we've gone through this year that part of the business is in fact accelerating much more rapidly as far as interest. And you know, to the extent that we can have the government fund a good bit of what we're trying to do, we certainly want to make sure we take every advantage of that or make sure that they are a customer or that they are requiring anyone that's getting a government contract to become a customer. Either one of those works fine provided we can get the technology out there in front of them. That's a little bit of, you know, why we're also having some limited expansion in the markets that we previously put our initial networks into.

Three dimensional P&C type of a capability.

Three-dimensional PNT-type capability. So we're exploring all of those options. But there's no doubt, I mean one thing we've learned as we've gone through this year that part of the business is in fact accelerating much more rapidly as far as interest. And you know, to the extent that we can have the government fund a good bit of what we're trying to do, we certainly want to make sure we take every advantage of that or make sure that they are a customer or that they are requiring anyone that's getting a government contract to become a customer. Either one of those works fine provided we can get the technology out there in front of them.

So we're exploring all of those options.

But it's no doubt I mean, one thing we've learned as we've gone through this year.

That part of the business is in fact accelerating much more rapidly as far as interest.

And.

To the extent that we can have the government fund.

What we're trying to do well, we certainly want to make sure. We take every advantage of that.

Or make sure that they are a customer.

Or that they are requiring anyone that's getting a government contract to become a customer either one of those works fine.

Provided we can get the technology out there in front of them, that's a little bit of why we're also having some limited expansion in the markets that we previously put our.

That's a little bit of, you know, why we're also having some limited expansion in the markets that we previously put our initial networks into.

Initial networks into.

Gary Parsons: We're expanding to a number of additional markets right now, but on a very judicious build. So, I will have to say we don't have a firm answer to that. But the question you asked is the question of the day that is coming so much more rapidly than we expected. We have to understand how we best align our business strategies and our product offerings to make sure we take advantage of it.

We're expanding to a number of additional markets right now, but on a very judicious build. So, I will have to say we don't have a firm answer to that. But the question you asked is the question of the day that is coming so much more rapidly than we expected. We have to understand how we best align our business strategies and our product offerings to make sure we take advantage of it.

We're expanding to a number of.

Additional markets right now.

But on a very judicious build so I will have to say, we don't have a firm answer to that.

But the question you asked is the question of the day.

That is coming still much more rapidly than we expected we have to understand how we best align our business strategy and our product offerings to make sure we take advantage of it.

[Analyst] (RF Lafferty): Now as 2020 as that works plays out, any change in headcount, I mean are you going to be hiring more engineers, sales staff? I mean what the progressive on that.

Jamie Perez: Now as 2020 as that works plays out, any change in headcount, I mean are you going to be hiring more engineers, sales staff? I mean what the progressive on that.

No.

<unk> plays out and your change in head count.

You're going to be hiring more engineers sales staffs, I mean whats the progress on that.

Yes, it's a little bit.

Gary Parsons: Yeah, go ahead, Ganesh.

Yes.

Yeah go ahead, Ganesh, let me look.

Ganesh Pattabiraman: Let me, so yes, so I mean.

So.

Yes, so I mean.

Chris Gates: I think as Gary mentioned, you know.

I think as Gary mentioned, you know.

I think as Gary mentioned, we are going to be.

Ganesh Pattabiraman: We are going to be, this is an opportunity that we were, is coming faster than we had anticipated, which is obviously good news for us. We are looking at, at.

We are going to be, this is an opportunity that we were, is coming faster than we had anticipated, which is obviously good news for us. We are looking at, at.

This is an opportunity that we were.

He's coming faster than we had anticipated which is obviously good news for us and so we are looking at.

Ganesh Pattabiraman: Not only the technology and the platform development to ensure sort of alignment with those types of timelines, but also hiring the right set of folks to.

Not only the technology and the platform development to ensure sort of alignment with those types of timelines, but also hiring the right set of folks to.

Not only the technology and the platform development to ensure sort of alignment with those types of timelines, but also hiring the right set of folks too.

Ganesh Pattabiraman: Reach out and be in a position to not only get access to some of the funding that may be available to.

Reach out and be in a position to not only get access to some of the funding that may be available to.

Reach out and.

Be in a position to not only get access to some of the funding that may be available too.

The help with the build out but also but.

Ganesh Pattabiraman: Help with the build out, but also with.

Help with the build out, but also with.

The adoption and usage of the service within the government agencies.

Ganesh Pattabiraman: The adoption and usage of the service within the government agencies or the.

The adoption and usage of the service within the government agencies or the.

And or the.

A different end user of critical infrastructure providers.

Ganesh Pattabiraman: Different end user critical infrastructure providers that would need to leverage this type of capability.

Different end user critical infrastructure providers that would need to leverage this type of capability.

That would need to leverage this type of capability.

[Analyst] (RF Lafferty): Any of these programs. I mean maybe it's hypothetical, but be designated as national security, which might take precedence because I think when something's designated as national security, you know, everything's thrown at the program to, you know, everything's.

Jamie Perez: Any of these programs. I mean maybe it's hypothetical, but be designated as national security, which might take precedence because I think when something's designated as national security, you know, everything's thrown at the program to, you know, everything's.

Okay any of these programs.

Maybe it's hypothetical but.

It has a national security, which what might take precedent or something because I think when something that doesn't is not just security.

Everything's.

At the program.

To evidence.

I didn't like it.

Paul.

Uh huh.

Ganesh Pattabiraman: This whole issue around PNT resilience is being viewed as building the resilient infrastructure within the country to be able to withstand not only the natural hazards that come about, but also the cyber hazards that we experience on a relatively daily basis.

Whole issue around PNG billions is being viewed as building the resilient infrastructure within the country to be able to withstand.

Only the natural hazards that come about but also the cyber.

Hazards.

That we experience on the relatively daily basis.

Ganesh Pattabiraman: From that perspective, I think it is absolutely a national priority to build that infrastructure to be resilient. I think I don't know about necessarily the classification of national security, but it is part of the framework for the infrastructure of the future and the resilient infrastructure that the government is very focused on in trying to build at this point.

And so from that perspective, I think it is absolutely a national priority to build that in.

From that perspective, I think it is absolutely a national priority to build that infrastructure to be resilient. I think I don't know about necessarily the classification of national security, but it is part of the framework for the infrastructure of the future and the resilient infrastructure that the government is very focused on in trying to build at this point.

Infrastructure to be to be resilient.

So I think I don't know about necessarily the classification of.

National Security, but it is it is part of the framework for the infra.

Infrastructure of the future in the Brazilian infrastructure that the government is very focused on and trying to build at this point.

[Analyst] (RF Lafferty): All right, now switching over to the consumer. Unity just a couple days announced some transactions up in there. They're doing a JV with China, and they're trying to acquire, merging with IronSource, and another company even was trying to put a non-binding solicitation for Unity. I mean, is Unity a client? I know they have some gaming, 3D gaming application. It might be too early, but can you tell me what's the implication for NextNav and the promising, evidently promising outlook?

Jamie Perez: All right, now switching over to the consumer. Unity just a couple days announced some transactions up in there. They're doing a JV with China, and they're trying to acquire, merging with IronSource, and another company even was trying to put a non-binding solicitation for Unity. I mean, is Unity a client? I know they have some gaming, 3D gaming application. It might be too early, but can you tell me what's the implication for NextNav and the promising, evidently promising outlook?

Alright, now switching over to the consumer unity, just a couple of days announce some transactions that we knew they were doing a JV with China and they're trying to acquire.

Emerging with iron source in another company.

It was trying to put a nonbinding solicitation for unity I mean.

Client and I know they have some gaming up to three the game and I'm curious I mean it might.

Too early but can you tell me.

What's the implication for next to nothing the promising promising outlook.

Ganesh Pattabiraman: Unity is definitely a partner of ours. I think we announced that last year we were hosted on their application store.

So unity is definitely a partner of ours I think we announced that last year. We are hosted on their.

Application store.

And as a capability that other app providers can leverage.

Ganesh Pattabiraman: As a capability that other app providers can leverage.

As a capability that other app providers can leverage.

Ganesh Pattabiraman: We recently renewed that.

We recently renewed that.

Ganesh Pattabiraman: Contract with them, both Unity and.

Contract with them, both Unity and.

The contract with them and so both unity and.

Unreal.

Ganesh Pattabiraman: Unreal, who is the provider of the other major platform on the gaming side, they both are partners of ours who are.

Unreal, who is the provider of the other major platform on the gaming side, they both are partners of ours who are.

As the provider.

The other major platform on the gaming side. They both are partners, so far who are.

Ganesh Pattabiraman: Making the capability available on their platforms. That's where we see actually a lot of interest and traction in the gaming space for developers who are looking to incorporate our technology to realize the digital twin and the Metaverse types of applications. Some of the recent announcements that we made just a few months ago, things like Widow Games and echo3D, are all built on the Unity platform, and a lot of them actually came from that platform availability that we have with them. We do have a very good relationship with Unity, and you know, we're seeing the.

Making the capability available on their platforms. That's where we see actually a lot of interest and traction in the gaming space for developers who are looking to incorporate our technology to realize the digital twin and the Metaverse types of applications. Some of the recent announcements that we made just a few months ago, things like Widow Games and echo3D, are all built on the Unity platform, and a lot of them actually came from that platform availability that we have with them. We do have a very good relationship with Unity, and you know, we're seeing the.

Making the capability available on their platforms and Thats, where we see actually a lot of interest and traction in the gaming space for developers.

Looking to incorporate our technology to realize the digital twin and <unk> types of applications. Some of the recent announcements that we made.

Just a few months ago places things like video games and Echo <unk> are all built on the unity platform and a lot of them actually came from from that.

Platform availability that we have with them so.

So we do have a very good relationship with unity and.

We're seeing the.

Ganesh Pattabiraman: Applications trying to leverage this capability for commercial purposes.

Applications trying to leverage this capability for commercial purposes.

Good.

<unk>.

Trying to leverage this capability for commercial purposes.

[Analyst] (RF Lafferty): All right, yeah, it seems like everything's going in high speed. All right, thanks for the update, guys. All right, thank you.

Jamie Perez: All right, yeah, it seems like everything's going in high speed. All right, thanks for the update, guys. All right, thank you.

Alright, yes, it seems like everything is going in high speed alright, thanks for the update guys.

Right. Thank you.

Ganesh Pattabiraman: Absolutely.

Absolutely.

Operator: There are no further questions at this time. I will now turn the call over to Gary Parsons for closing remarks.

There are no further questions at this time I will now turn the call over to Gary <unk> for closing remarks.

Gary Parsons: Thank you very much, operator. Once again, thanks everyone for joining us on the call today. As you can tell, we have an awful lot of plates in here, and we're getting working with an awful lot of increasing number of platforms.

Thank you very much operator, and once again, thanks, everyone for joining us on the call today as you can tell we have an awful lot of plates in the air.

And we're getting working with an awful lot of increasing number of platforms.

And and provider recently.

Gary Parsons: Providers and partners on the Pinnacle side. We have this new very rapid governmental interest that's coming along for TerraPoint. We're definitely moving as quickly as we can, but we're also trying to do it in a careful basis relative to the ramp up of our expenses and headcount to make sure we are adding the right people and the right products to align well with the business opportunity that's in front of us. We look forward to speaking with you all again next quarter, and thanks very much for your participation.

Providers and partners on the Pinnacle side. We have this new very rapid governmental interest that's coming along for TerraPoint. We're definitely moving as quickly as we can, but we're also trying to do it in a careful basis relative to the ramp up of our expenses and headcount to make sure we are adding the right people and the right products to align well with the business opportunity that's in front of us. We look forward to speaking with you all again next quarter, and thanks very much for your participation.

And partners on the clinical side and then we have this new <unk>.

Rapid governmental interest that's coming along for Terra point so.

We're definitely moving as quickly as we can but we're also trying to do it in a.

Careful basis relative to the.

The ramp up of our expenses and head count to make sure we are adding the right people and the right products to align well with the business opportunity. That's in front of US. So we look forward to speaking with you all again next quarter and thanks very much for your participation.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

This concludes today's conference call. Thank you for your participation you may now disconnect.

Operator: Please wait. The conference will begin shortly.

Please wait the conference will begin shortly.

[music].

Okay.

[music].

Yes.

[music].

Sure.

[music].

Yes.

Yeah.

Q2 2022 NextNav Inc Earnings Call

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